Bernstein Names Burberry Preferred Luxury Sector Self-help Story in FY26, Updates Forecasts

06:12 AM EST, 01/05/2026 (MT Newswires) -- Bernstein named Burberry Group (BRBY.L) as its preferred self-help story among global luxury goods companies in 2026, highlighting the British luxury retailer's "convincing turnaround plan" that has resulted in "early encouraging results." In its outlook report for the sector published Monday, the research firm said tailwinds from consumers trading down are anticipated to support the company's strategy amid expectations of a gradual recovery in luxury demand globally during the year. "Within self-help/high-beta stocks brand momentum should be the centre of focus, instead of the temptation of mean reversion," analysts said, noting the group's improving brand momentum score in China and the West. "Long Burberry seems a good way to play this trade on the European side of the Atlantic. Besides, contrary to other self-help stories in Europe, the efforts have been under way, are yielding initial encouraging results, seem convincing in terms of senior management organisation and direction." Bernstein revised its financial estimates, taking into account the foreign exchange impact on revenue and EBIT, including higher EPS projections for fiscal years 2026 and 2027 by 9% and 26%, respectively. The outperform rating on the stock was left unchanged, along with its price target of 15 pounds sterling.